Agricultural mortgage advice

When it comes to agricultural mortgages, it can be tricky to know where to start.

Keep reading our top 10 tips blog and you’ll know your next steps in no time at all. 

  1. Don’t go splitting the title to fit in with the high street acreage rules.  There are lenders out there who have competitive terms and no maximum acreage limits. 
  2. If the property has an annexe explain to the lender what it will be used for. Most lenders accept family staying in an annexe on a standard residential mortgage.
  3. An Agricultural or Equestrian tie property will need specialist help so seek out a broker. 
  4. Equestrian facilities can often be deemed to have commercial potential and can scare off high street lenders. Having specialist advice on this type of property may save you a lot of money as we can still get high street terms on these properties. 
  5. Inheriting a farm can seem complex however lenders can lend on acreage value. 
  6. Don’t be scared to diversify!
  7. Getting planning permission on land and selling can turn a large profit.  Lenders can fund the planning application.
  8. Having a separate income to the farm can help with affordability and make a lender more comfortable with a deal. 
  9. If purchasing a property as a commercial venture, ask the vendor for the last 3 years trading accounts.
  10. If you are holiday letting a cottage or annexe which is on the freehold of your main residence, speak to us.  There are an increasing number of lenders who are becoming more comfortable with this scenario. 

If you have been looking for a local mortgage broker, Bristol-based experts Fox Davidson have many years experience in securing various mortgage types – including agricultural mortgages. Contact the team today for further assistance.